ASX rises but Trump tariff dangers remain

The ASX 200 rose on Monday, snapping a 2.5 per cent weekly fall last week, but market sentiment remains low on Donald Trump’s tariff plans.

Energy and material shares helped drive the Australian market higher during Monday’s trading, even as US tariff uncertainty continues to weigh on market confidence.

The benchmark ASX200 index gained 14.1 points or 0.18 per cent to finish Monday’s trading at 7962.30 points.

The broader All Ordinaries rose 13.20 points or 0.16 per cent to 8191.70.

The Aussie dollar is buying around US63.05 cents.

The ASX 200 modest rise follows a 2.5 per cent fall last week. Picture Newswire/ Gaye Gerard.

While the bounce was modest, it ended a week of carnage on the local bourse as shares dropped throughout the week.

Capital.com senior financial market analyst Kyle Rodda said the ASX recovered slightly after a 2.5 per cent sell-off last week on fears of escalating trade tensions between the US and China, Canada and Mexico.

“The impacts of tariffs are one thing – a negative for growth, in the aggregate, and a material price shock,” he said.

“But what’s worse for markets right now is the uncertainty about what those tariffs will actually look like, with the on again, off again nature making it impossible for businesses to plan, invest and employ, for consumers to consume with confidence, and for investors to price-in the future.”

On an overall positive day for the market, eight of the 11 sectors finished in the green.

Energy stocks bounced back after leading the sell off last week, as Santos bounced 1.33 per cent to $6.10, while Woodside Energy surged 1.87 per cent to $22.91 and Ampol grew marginally up 0.16 per cent to $24.47.

But it could be a short week of gains, as the first instalment of US President Donald Trump’s tariff plans comes into effect on Wednesday with a 25 per cent levy on steel and aluminium exports to the United States.

These tariffs include on Australian exports, although the Albanese government is seeking an exemption.

Eight of the 11 sectors finished in the green. Picture: NewsWire / Max Mason-Hubers

The insurance sector also had strong gains on Monday, with QBE up 1.25 per cent to $21.04, Suncorp jumped 2.35 per cent to $19.17 and Insurance Australia Group traded 1.70 per cent higher to $7.79 following the downgrade of ex-Cyclone Alfred to a tropical low.

Three of the big four banks dropped on Monday, as ANZ closed in the green, up marginally 0.17 per cent to $28.72. CBA shares dropped 0.24 per cent to $148.14, while NAB is down 0.55 per cent to $34.07 and Westpac shares closed 0.56 per cent lower to $30.40.

In company news, US gaming giant Bally Corporation has made a $250m play for the embattled Star Entertainment in return for a 50.1 per cent stake in the casino’s Sydney, Brisbane and Gold Coast operations.

BHP announced it will expand its operation into Africa, after striking a $40m deal to take control of two Botswana copper projects.

Under the deal, BHP will fund ASX-listed Cobre’s exploration projects, with an option to take a 75 per cent stake in the project, leaving Cobre with the remaining 25 per cent.

Shares in BHP rose 0.56 per cent to $39.20 on the news.

Fellow major miner Rio Tinto surged 3.05 per cent to $118.71, while Fortescue metals fell 0.38 per cent to $15.86.

Johns Lyng had the biggest sell-off on Monday after the S&P confirmed the company will be booted out of the ASX200 when the market does its quarterly rebalance.

Originally published as ASX rises but Trump tariff dangers remain